FIRING Erik ten Hag and Dan Ashworth meant Manchester United STILL made a loss last year – despite cutting 400 backroom jobs.
Old Trafford staff bore the brunt of Sir Jim Ratcliffe’s cost-cutting round.
PAMan Utd have announced a record turnover[/caption]
Shutterstock EditorialSir Jim Ratcliffe has been pushing to cut costs at Old Trafford since arriving[/caption]
Employees at the stadium and the club’s Carrington training ground saw jobs lost and free lunches axed for the survivors, with United’s final accounts for 2024-25 showing that contributed to shaving £51m off the club’s wage bill.
But United’s figures showed the club paid out a staggering £36.6m in compensation for axed senior staff.
And the bulk of that went to paying off ten Hag, his coaching staff and short-lived sporting director Ashworth, sacked after just five months in the role.
United reported record total revenues of £665m, including £160.3m in Old Trafford gate receipts – helped by controversial ticket price rises.
Commercial income soared to £333.3m in the first year of the five-season shirt deal with Snapdragon and other new partnerships including one with Coca-Cola.
But with United completing the £50m re-fit of Carrington – unveiled last month – costs outstripped income by a pre-tax total of £39.6m, with an operating loss of £18.4m.
That compared with an operating loss of £69.3m the previous year – much of which was due to a 33 per cent wages cut to the first team squad – adding up to £51.5m – because United were not in the Champions League.
Over the past year, United’s total head count of staff has been cut from around 1100 employees to just 700, a cut of more than a third of employees.
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PAThe compensation paid to former manager Erik ten Hag last year contributed to the loss[/caption]
United insist the “restructuring” programme and significant savings in the overall costs base was essential for the long-term health of the club and aimed at making the entire organisation more efficient and sustainable.
Old Trafford chiefs are determined to bring the footballing success that will make the club more profitable, with returning to the Champions League a priority.
United pointed to the £215m initial summer spend to land Matheus Cunha, Bryan Mbeumo, Benjamin Sesko, Senne Lamens and Diego Leon.
But chief executive Omar Berrada’s statement accompanying the financial results did not name any of the players to under-pressure boss Ruben Amorim.
Berrada said: “We are working hard to improve the club in all areas.
“On the field, we are pleased with the additions we have made to our men’s and women’s first team squads over the summer, as we build for the long-term.
“Off the field, we are emerging from a period of structural and leadership change with a refreshed, streamlined organisation equipped to deliver on our sporting and commercial objectives.”
He added: “We are also investing to upgrade our infrastructure, including completion of the £50m redevelopment of our men’s first team building at Carrington, on time and on budget, following prior investment in our women’s team facilities, to create a world-class environment for our players and staff.
“Meanwhile, planning continues to meet our ambition of developing a new stadium at Old Trafford as part of a transformational regeneration of the surrounding community.
“To have generated record revenues during such a challenging year for the club demonstrates the resilience which is a hallmark of Manchester United.
“Our commercial business remains strong as we continue to deliver appealing products and experiences for our fans, and best-in-class value to our partners.
“As we start to feel the benefits of our cost- reduction programme, there is significant potential for improved financial performance, which will, in turn, support our overriding priority: success on the pitch.”
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